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Walmart, the retail giant, is undergoing a digital makeover. They’re replacing traditional paper price tags with electronic shelf labels (ESLs) or digital screens across their 2,300 U.S. stores by 2026. This shift promises a wave of changes for both shoppers and store operations, but are they really what they’re cracked up to be for the customer?
The most immediate benefit lies in efficiency. Digital systems allow for quick price updates via a mobile app, freeing employees from the time-consuming task of manual tag changes. This translates to more staff available to assist customers and maintain store tidiness. The digital price tags in theory, can display promotional information or low-stock alerts, enhancing the shopping experience.
Bait And Switch Potential
The biggest implication lies in the potential for dynamic pricing. ESL technology allows retailers to adjust prices in real-time based on factors like demand, competitor pricing, and even time of day. While Walmart has denied plans for such practices (they promise guys, why wouldn’t they do this), the possibility is there, almost too tempting.
After the Wendy’s dynamic pricing fall-out a few months ago for announcing plans to introduce digital menu boards and dynamic pricing which would see changing prices at peak hours. It quickly drew critisicm and become a sore spot for customers wary of shady business practices.
A Walmart spokesperson said to Business Insider: “There is no plan to change the frequency of price changes or implement different pricing methods.”
Daniela Boscan, a food and consumable team lead at a Walmart store in Hurst, Texas, wrote in a blog post:
“A price change that used to take an associate two days to update now takes only minutes with the new DSL system.”
Proponents of dynamic pricing argue it can lead to more competitive prices and optimized inventory management. Imagine a scenario where a carton of milk nearing its expiry gets automatically discounted to encourage a sale. Opponents, however, raise concerns about transparency and fairness. Shoppers might feel frustrated by unpredictable price fluctuations, especially for budget-conscious purchases.
There are immediate benefits in efficiency and potentially clearer communication with shoppers, but the specter of dynamic pricing hangs in the air. If Walmart embraces this strategy, how would anyone know? And how will it be implemented to ensure customer trust remains a priority?
